The FM chalks out a roadmap for renewable energy and nuclear power expansion involving strategic collaborations, pumped storage, and significant funding for solar and nuclear power projects
The government has announced a strategic collaboration with the private sector to establish Bharat Small Reactors. These reactors are designed to be more efficient and adaptable to India’s diverse energy needs. The initiative also includes research and development (R&D) of Bharat Small Modular Reactors, which promise enhanced safety features and operational flexibility. By investing in newer technologies for nuclear energy, the government aims to diversify the country’s energy mix and reduce dependency on fossil fuels.
The budget introduces a Pumped Storage Policy to facilitate the integration of renewable energy into the grid. Pumped storage systems store excess energy generated from renewable sources like solar and wind and release it during peak demand periods. This policy is crucial for stabilising the grid and ensuring a reliable power supply as the share of renewable energy in the overall energy mix grows.
The government has set aside funds to help micro and small industries transition to cleaner energy sources. This involves conducting investment-grade energy audits in 60 clusters, with plans to expand to 100 clusters in the next phase. These audits will pinpoint opportunities for energy efficiency improvements and cleaner energy adoption, which financial incentives will back. The goal of this initiative is to reduce the carbon footprint of small industries and promote sustainable practices.
A significant amount of funds has been allocated for the establishment of an 800 MW commercial plant using Advanced Ultra Super Critical (AUSC) technology through a joint venture between NTPC and BHEL. AUSC technology is recognised for its higher efficiency and lower emissions compared to conventional thermal power plants. This project demonstrates a renewed focus on thermal power but with a cleaner and more efficient approach.
The budget provides strong support for the solar power sector. Allocation for grid-connected solar power projects has doubled from Rs 4,970 crore in 2023-24 to Rs 10,000 crore in 2024-25. Additionally, the government has waived customs duties on more capital goods used in the manufacturing of solar cells and panels, which is expected to stimulate domestic production and reduce costs.
The budget has earmarked Rs 68,769 crore for energy, with significant increases in funding for nuclear power projects and solar power. The allocation for nuclear power projects has increased from Rs 442 crore in 2023-24 to Rs 2,228 crore in 2024-25. Similarly, the allocation for grid-connected solar power has seen a substantial rise, reflecting the government’s commitment to expanding renewable energy capacity.